Q1

(a) What are the period end adjustments that have to be made to expenses and revenue?

(b) What are the elements contained in a complete set of financial statements?

(c) Identify two differences between capital expenditure and revenue expenditure.

(d) State whether each of the following items should be classified as "capital" or "revenue" expenditure or income:-

I. Cost of new office equipment

II. Computer repair and maintenance costs

III. Profit on the sale of a factory premises

IV. Cost of installing new machine in the business premises

V. Annual depreciation of office building

VI. Revenue from sales by credit card